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Investing.com - Benchmark maintained its Buy rating and $30.00 price target on IMAX Corporation (NYSE:IMAX) ahead of the company’s second-quarter earnings report, scheduled for July 24. According to InvestingPro data, IMAX shares have delivered an impressive 62% return over the past year, though they currently trade at a relatively high P/E ratio of 55.6.
The research firm noted IMAX’s confirmed Q2 box office performance reached $278 million, prompting modest model adjustments including a slight increase in expected system installations for the quarter. The company maintains a healthy financial position, with InvestingPro analysis showing liquid assets exceeding short-term obligations by nearly 4 times.
Benchmark highlighted IMAX’s unique position in premium cinema as a key strength, supported by an upcoming slate of films specifically shot for IMAX formats.
The firm expressed optimism about IMAX’s accelerating global system growth as another factor supporting its positive outlook on the stock.
Benchmark also pointed to IMAX’s lean operating model, which it believes drives strong margin expansion and provides long-term earnings leverage for the company.
In other recent news, IMAX Corporation has expanded its share repurchase program by $100 million, bringing the total authorization to $500 million, with $250 million still available. This initiative, which began in 2017, has already seen the repurchase of 15.1 million shares. Analysts at B.Riley have initiated a Buy rating for IMAX, setting a price target of $36, citing strong box office performance and increased system installations in China as key factors. Texas Capital Securities also reaffirmed their Buy rating and $36 price target after IMAX’s first-quarter earnings exceeded expectations. Benchmark analysts maintained their Buy rating with a $30 target, highlighting IMAX’s growth prospects due to a record number of films shot for its format and the expansion of its premium exhibition network. Despite rumors of a potential ban on Hollywood films in China, Benchmark analysts continue to hold a positive outlook on IMAX’s stock. The company is expected to generate over $1.2 billion in Global Box Office revenues this year, marking a significant increase from 2024. These recent developments underscore IMAX’s strategic initiatives and market position amidst a dynamic entertainment landscape.
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